ECB Symbolic Tightening

ANZ expects the ECB to deliver a symbolic 25bp hike on June 11, despite fragile economic conditions. The firm anticipates one final hike in September, reaching a terminal rate of 2.50%.

Key Takeaways

• 1.ANZ expects the ECB to hike the deposit facility rate by 25bp to 2.25% at the June 11 meeting.
• 2.The hike is viewed as largely symbolic and not fully supported by current economic data like fragile growth and well-anchored inflation expectations.
• 3.The bank expects one further hike in September to reach 2.50%, followed by a non-committal, data-dependent stance.

Table of Contents

• ECB: symbolic tightening

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